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2016 Annual Report
| JAMAICA PUBLIC SERVICE COMPANY LIMITED

Bogue Power Plant, Now Operating
on Natural Gas
Vision
We are the people leading the
energy revolution, unleashing
Jamaica’s growth and prosperity.
Mission
Through inspired and committed
employees and innovative
technologies, we deliver an energy
solution for every Jamaican –
improving lives, fueling the growth
of businesses, and powering
the development of Jamaica.
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Corporate Profile
Jamaica Public Service Company Limited JPS currently has 630,000 customers
(JPS) is a vertically integrated electric who are served by a workforce of 1,700
utility company and the sole licensed employees.
distributor of electricity in Jamaica. The
Company is engaged in the generation, The Company owns and operates: 4
transmission and distribution of power stations, 9 hydroelectric plants,
electricity, and also purchases power and 1 wind farm.
from seven Independent Power
Along with the provision of electricity, JPS
Producers.
is a key partner in national development.
In April 2011, Marubeni Corporation The company has a vibrant corporate
entered into a Purchase and Sale social responsibility portfolio and makes
Agreement with Korea East-West Power significant contributions in the areas of
(EWP), for joint ownership of majority education and youth development. The
shares (80%) in the Jamaica Public company also has a strong environmental
Service Company Ltd (JPS). The focus and carries out its operations in an
Government of Jamaica and a small environmentally friendly manner.
group of minority shareholders own the
The Office of Utilities Regulation (OUR),
remaining shares.
is the independent regulatory agency with
responsibility for the electricity sector.
Working to maintain reliable service
JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

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Contents
Statement to Shareholders 5
Board of Directors 8
Executive Leadership Team 10
Management Discussion & Analysis 13
Performance Highlights 17
Directors’ Report 25
Corporate Data 26
Ten Largest Shareholdings 28
Corporate Governance 31
Operational Statistics 38
Key Performance Indicators 39
Independent Auditors’ Report 44
Statement of Financial Position 52
Statement of Profit or Loss and
Other Comprehensive Income 53
Statement of Changes in Shareholders’ Equity 54
Statement of Cash Flows 55
Notes to the Financial Statements 56
Notice of Annual General Meeting 107
Form of Proxy 108

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A Section of the JPS Munro Wind Farm

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Statement to Shareholders
Overview This 2016 Electricity Licence was issued specifically
In 2016, the energy landscape continued to change – with the view to spur development, promote energy
locally, regionally and internationally. JPS experienced efficiency and renewable development, and facilitate
that change first hand and was an integral part of the growth of the Jamaican economy. It provides
milestone achievements in the local energy sector. greater regulatory certainty and improved investor
confidence which will facilitate the ability of the utility
First, a new regulatory framework emerged, including
company and other energy sector partners to raise the
a new licence for JPS, a new Electricity Act, and a
capital needed to retool the energy sector in Jamaica.
revised act to guide the Office of Utility Regulation.
Government policies and practices were changed as The new Licence is complemented by a new 2015
the many players in the industry aligned around the OUR Act and Electricity Act which together result in a
vision for Jamaica’s energy sector that would both significant improvement and modernisation of the
further economic growth and promote energy security. regulatory laws in Jamaica.
This vision survived a change in government As a result, JPS was able to more powerfully embrace
administration and a number of technical and financial energy efficiency programmes and net billing
challenges. initiatives without conflict and be able to fully support
the GOJ’s initiatives and policy directives for the
Throughout the year, JPS took bold steps to deliver
energy sector. This includes the desire to modernize
on our vision to lead an energy revolution to unleash
streetlights island-wide, to introduce new tariff
Jamaica’s growth and prosperity. We continued to be
structures that support economic development, to
guided by the four pillars of our energy strategy for
support IPPs which further promote renewables and
Jamaica: fuel diversification, smart grid technology,
to support the introduction of LNG to Jamaica. This
unique solutions for customers, and nation building
new regulatory compact will make it much easier for
initiatives for energy efficiency, customer
Jamaica to attract the billions of US dollars that are
empowerment and energy education. We achieved
required to modernize the energy sector over the next
several major breakthroughs in our operations, and
decade.
utilised technology to improve service to our
customers, while capitalizing on our human capital. Financial Performance
We also became better organized to meet the JPS ended 2016 with a Net Profit of $24.1 million due
demands of the changing market. primarily to the following factors.
2016 also repositioned JPS in the market as the
With an increase in sales of approximately 4%, the
Energy Experts, and we continued to enjoy improved
Company earned operating revenues of $712.5 million
relationships with our stakeholders through significant
for the year. Due primarily to a decrease in fuel costs
improvements in customer service, an expanded
and therefore fuel revenues, revenues were $47.3
media relations programme, the roll-out of our
million less than 2015. It should be noted that on
“Reimagine Energy” campaign, a more strategic
average, fuel prices in 2016 were below the average
approach to corporate giving and greater engagement
prices in 2015. Even though prices began to rise in the
of communities, regulators and policy makers.
latter half of 2016, the overall average was still below
Licence Amendment 2015.
After almost two years of discussions and In addition, due to the removal of the Bogue Plant
negotiations with various representatives of the GOJ Reconfiguration Fund (BPRF) ($12.5 million), the
and the Ministry of Energy, and based on guidance Company’s non-fuel revenues was relatively flat
received from several international consultants, ESET between 2016 and 2015. The BPRF had been
and the OUR, we were able to successfully conclude approved by the OUR for collection over a 12-month
deliberations which resulted in a JPS Electricity period, which ended in January 2016, to facilitate the
Licence on January 27, 2016. conversion of the Bogue 120 MW Power Plant to use
natural gas.

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Statement to Shareholders Cont’d
Cost of Sales for the year was $427.8 million which Fuel Diversification
reflected a $45.8 million decline over the previous 2016 marked a turning point for Jamaica, as the
year. This reduction is primarily due to lower fuel costs country achieved several significant milestones for
in 2016, which were somewhat offset by an increase fuel diversification. After more than a decade of
in the energy acquired from Independent Power preparation and planning, natural gas was finally
Producers (IPPs), in particular as a result of additional introduced into the fuel mix for electricity generation.
power purchase agreements which became effective In addition, the country doubled the amount of
during the year. During 2016, we entered into renewables on the grid within the space of a few
contracts for 80 MW of additional renewable capacity months.
with BMR Wind, Content/WRB Solar and Wigton III,
Liquefied Natural Gas (LNG), now accounts for
to purchase net energy output.
approximately 10% of JPS’ production – a notable
Operating Expenses grew $20.3 million over the prior achievement, as we push for more diversity in the fuel
year. This includes a significant decrease in mix. The use of LNG will result in greater stability in
depreciation charges of which $13.4 million related to the price of electricity for our customers. Jamaica will
changes in the rates of depreciation used for certain also enjoy additional economic benefits to be derived
assets held. Specifically, the 2016 Electricity Licence from having LNG, including the potential for LNG
resulted in shorter useful lives for several asset bunkering for ships, LNG transhipment services for
categories, notably computers and metering the Caribbean to support small scale deliveries and
equipment. The lives of these assets were natural gas supplies for industrial purposes (including
substantially reduced, for example, from 15 to 6 years the transport sector). Jamaica is only the third country
for computers and from 25 to 15 years for meters. in the region to import LNG.
The depreciation rates used by the company were
LNG will further enable JPS to produce cleaner
also modified to bring them in line with these new
electricity, while allowing for more seamless
rates, which resulted in significant accelerated
integration of renewables on the grid.
depreciation charges for these categories.
With regard to renewables, JPS facilitated the addition
The Company was able to reduce its other expenses of 80MW of renewables in 2016, from partnerships
by $13.3 million, mainly as a result of lower with several Independent Power Producers (IPPs): 36
restructuring costs, house wiring expenses and other MW of wind energy from BMR Jamaica Wind; 24MW
provisions. Other notable items include: a reversal of of wind energy from Wigton; and 20MW of solar
expenses ($3.9 million) associated with the buyout of energy from Content/WRB Solar. In addition, the
sick leave that did not materialize in 2015 as planned, Company began negotiation of a Power Purchase
development fee income ($2.5 million) based on our agreement with Eight Rivers Energy Company (EREC),
participation in the development activities associated which was selected by the Office of Utilities
with OH 190MW project, and improvement in the Regulation (OUR) for the construction of a
amounts earned from other income by $1.5 million. photovoltaic power generation plant in the west of the
Net Finance Costs for 2016 ($39.8 million) were $2.7 island, to supply up to 37 MW (net) of electricity.
million or 6% lower than 2015, primarily due to lower Generation Performance
interest costs. In 2016, JPS served the highest net demand since
As a result of the foregoing factors and a taxation 2009. Demand was 155GWh or 5% higher than
charge of $8.9 million for 2016, JPS recorded a net forecasted. A cheaper product 2016 (US$0.18) versus
profit of $24.1 million as compared to the $26.5 million 2015 (US$0.38) helped demand. The peak for 2016
earned in 2015. 656.8MW was achieved in September. Daily loads
were higher than normal for the entire year, slight
temperature increase over the period and small

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customer growth with some commercial customers headway in providing multiple channels for customers
returning to the grid also contributed to increased to contact us. We launched the JPS Mobile App,
demand. increased our customer engagement via Social Media,
and introduced Webchat on the JPS website. This
Smart Grid Roll-out
resulted in a 12% reduction in the number of calls
In 2016, JPS took first steps to introduce smart city
received, compared to 2015. At the same time, there
technology in Jamaica’s capital, with the roll-out of
was a 23% increase in our social media fan base –
smart meters in the commercial district of New
primarily due to the social media customer service. At
Kingston, and the replacement of streetlights to LED
the end of the year, the company had have over
streetlights with smart capabilities. As part of the
12,000 users of the JPS Mobile App, and more than
ongoing roll-out of the smart grid, JPS deployed more
1,800 customers were served via Webchat, which
than 20,000 smart meters in communities islandwide,
became fully operational in Q4.
and unveiled the country’s first smart home.
JPS also continued its roll-out of advanced A Solid Foundation
technology to improve the reliability of power supply In summary, in 2016, JPS established a solid
to our customers, while allowing for more efficient foundation for national development by significantly
access to information. Critical steps were taken during advancing the country’s fuel diversification agenda,
the year, to improve the company’s operations building out its smart-grid technology and developing
through the greater use of technology. These numerous customer solutions. With these innovations,
included the installation of 61 Distribution JPS is now being positioned as a best-in-class utility,
Automation (DA) switches; a SCADA upgrade project; which will further enhance Jamaica’s attractiveness as
the implementation of Street Light Maintenance App; an option for investors. The Company is committed to
and the implementation of Enterprise Asset continuing its contribution to nation building both
Management for the Bogue Power Station. through our operations, through the JPS Foundation
and our Community Renewal programme. JPS has
Unique Customer Solutions
fully embraced our motto: “Do Power Differently” and
In 2016, JPS expanded customer options with our
we are poised to take that idea even more forcefully
prepaid solution, “Pay As You Go,” to approximately
into 2017 as we continue to lead Jamaica’s energy
1800 customers islandwide. The new solution was
revolution.
embraced as an energy management tool, and was
welcomed primarily by landlords, seasonal electricity
users, and sporting facilities.
Our Energy Solutions Team continued to generate
revenue through the sale of LED’s Energy Efficiency,
and Renewable Energy solutions, in response to
growing customer demand. The team was also able Mr. Chang Sup Jo
to provide two additional services for customers: Chairman
maintenance of PV systems, and hurricane mitigation
(removal of solar panels). Energy Solutions also
demonstrated the feasibility of Solar Car Parks by
constructing two at our very own locations: at the
Head Office in New Kingston and at our Ruthven Road Ms. Kelly Tomblin
Commercial Office. President & CEO
During the year, the Company also made significant

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Board of Directors
Tatsuya Ozono
Director
Seiji Kawamura
Director
Chang Sup Jo Ha Kyong Song

Chairman of the Board Director

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Colin Williams Suzette Buchanan Dong Uk Kim
Director Director Alternate Director
Professor Gordon Shirley

(Retired)
Fitzroy Vidal Minna Israel

Director Director
Professor Evan Duggan

(Retired)
Hon. Charles Johnston, C.D Kengo Aoki Geun Tae Kim

Director Alternate Director (Retired)

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Executive Leadership Team
Kelly Tomblin
President and Chief Executive Officer

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Gary Barrow Sheree Martin
Chief Technology Officer Senior Vice President,
Energy Delivery
Joseph Williams Katherine P.C. Francis

Senior Vice President, Vice President,
Generation and Special Projects Legal and Compliance
General Counsel and
Corporate Secretary
Dan Theoc Keith Garvey

Chief Financial Officer Vice President,
Customer Service and
Communications

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Section of Bogue Plant and Operations

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Management Discussion and Analysis
Results of Operations This has resulted in total operating expenditure of
(Expressed in United States Dollars) $220.3 million being incurred in the current year as
compared to $200.0 million in 2015.
The Company earned operating revenues of $712.5
million for the year which represents a decline of $47.3 Net finance costs decreased by $2.7 million or 6% from
million or 6% relative to 2015, due primarily to the 17% $42.5 million in 2015 to $39.8 million in the current year
decrease in fuel costs recovered from customers offset mainly as a result of a reduction in interest expenses
by a 4% increase in energy sales (3,179 GWh in 2016 and loan financing fees primarily due to a lower overall
as opposed to 3,071 GWh in 2015). debt portfolio as compared to the prior year.
Cost of sales for the year was $427.8 million, which Other income earned for the year increased from $2.4
reflected a decline of $45.8 million or 10% compared to million in 2015 to $10.4 million in 2016. This increase is
2015. This is mainly as a result of the reduction in the primarily as a result of project development fees and
cost of fuel and the ongoing efforts of the Company to increased sales of scrap during the year as well as a
improve operational efficiency as measured by heat reduction in the provisions made for certain expenses.
rate. Actual production (net generation) for 2016 was The Company also benefitted from a reduction in other
4,349 GWh as compared to 4,209 GWh in 2015 expenses from $15.3 million to $2.0 million, primarily as
representing an increase of 3%. Due to the 4% increase a result of a reduction in provisions for restructuring
in energy sales previously mentioned, the Company was expenses and other costs made in 2015 which did not
able to benefit from a decrease in system losses over recur in 2016.
the prior year, with losses in 2016 being 26.9% of net Taxation expense for the current year was $$8.9 million
generation as opposed to 27.0% for 2015. as compared $4.3 million in 2015. This was primarily
Based on this performance, the Company has due to the improved profit performance and other tax
experienced a reduction in Gross Profit of 0.5% with related adjustments which were made during the year.
2016 being $284.7 million as compared to $286.2 Based on the foregoing, the Company has achieved a
million in 2015. net profit after tax of $24.1 million for 2016, representing
During the year, there was a marginal increase in a $2.4 million decrease over the prior year. These profits
operating expenses (excluding depreciation and result in a return on equity of approximately 6.6% for
amortisation expenses) of $0.6 million, moving from 2016 which is a reduction over the 7.9% earned in 2015.
$142.1 million in the prior year to $142.7 million in 2016, Liquidity
which is primarily due to an increase in third party
services and office and other expenses offset by Cash inflows from operating activities decreased slightly
savings experienced in bad debt. As a result, earnings from $117.9 million in 2015 to $117.1 million in 2016.
before interest, tax, depreciation and amortisation These cash flows are derived principally from billings to
decreased by 1% to $142.0 million in 2016 from $144.1 customers, which the company uses to meet its cash
million in 2015. Depreciation and amortisation expenses needs for operating expenses, routine capital
increased over the prior year, to $77.6 million as expenditure, debt service obligations and shareholder
opposed to $57.9 million in 2015. This increase is returns. These inflows from operating activities were
primarily as a result of the Company adjusting its offset by the cash outflows from investing and financing
depreciation rates to bring them in line with the activities. Cash outflows from investing activities
Amended Electricty Licence which was issued January decreased from $63.5 million in 2015 to $61.4 million in
27, 2016. The modification in rates resulted in an 2016. Cash outflows from financing activities decreased
acceleration in the depreciation and amortisation charge from $56.6 million in 2015 to $52.7 million in 2015, due
for several of the Company’s assets to a reduction in financing costs and the level of new
debt entered into by the Company.

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Management Discussion and Analysis Cont’d
These cash flows resulted in an improvement in the The Company, through training and management
cash position over the year with net cash & cash standards and procedures, aims to develop a
equivalents increasing from $5.6 million in 2015 to $8.7 disciplined and constructive control environment, in
million as at December 31, 2016. which all employees understand their roles and
obligations.
Capital Investment
Credit Risk
As in previous years, JPS has made significant
investments in the modernisation of its generation, Credit risk is the risk of financial loss to the Company if
transmission & distribution assets. These investments a customer or counterparty to a financial instrument fails
continue to outpace net income with capital expenditure to meet its contractual obligations, and arises principally
for 2016 and 2015 being $64.3 million and $68.7 million from the Company’s trade receivables, which is stated
respectively, compared to net income of $24.1 million net of an allowance for doubtful balances.
and $26.5 million respectively. As part of its management of credit risk, the Company
The Company has been able to maintain a strong requires account deposits from certain customers.
capital structure with total capitalisation, as measured Additionally, management has processes in place for
by Debt and Equity, totaling $764.3 million as at the prompt disconnection of services to, and recovery
December 31, 2016 representing a 2% increase over of amounts owed by defaulting customers.
the $750.8 million in the prior year. Based on the The Company establishes an allowance for impairment
Company’s continuing efforts in servicing its debt losses that represents its best estimate of incurred
obligation, the gearing ratio has reduced slightly to 45% losses in respect of trade and other receivables. The
in 2015 from 47% in 2015. Interest cover also improved main component of this allowance is a loss component
slightly from 4.22 times for 2015 to 4.25 times for the that relates to individually significant exposures. The
current year. loss allowance is determined based on historical
Risk Management - Overview payment statistics for similar financial assets and an
assessment of the debtors’ ability to settle the debt.
JPS has a comprehensive risk management framework
to monitor, evaluate and manage the principal risks Liquidity Risk
assumed in conducting its activities, which include Liquidity risk, also referred to as funding risk, is the risk
credit, liquidity, market and operational risks. Risk is that the Company will encounter difficulty in raising
managed through a framework of principles, funds to meet commitments associated with financial
organisational structures, and risk measurement and
instruments. Liquidity risk may result from an inability
monitoring activities that are aligned to the company’s
to sell a financial asset quickly at, or close to, its
activities.
fair value. Prudent liquidity risk management
The Board of Directors, in managing the business of implies maintaining sufficient cash and marketable
the Company, oversees the Company's risk securities, and the availability of funding through an
management framework. Key management has adequate amount of committed credit facilities.
responsibility for monitoring the Company’s risk
management policies in their specified areas and report
The Company's approach to managing liquidity is to
quarterly to the Board of Directors on their activities.
ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under
The Company's risk management policies are
both normal and stressed conditions, without incurring
established to identify and analyse the risks faced by
unacceptable losses or risking damage to its reputation.
the Company, to set appropriate risk limits and controls,
and to monitor risk and adherence to limits. Risk Key management of the Company aims at maintaining
management policies and systems are reviewed flexibility in funding by keeping lines of funding available
regularly to reflect changes in market conditions. as well as by acquiring and maintaining prudent cash
resources in appropriate currencies.

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Market Risk Operational Risk
Market risk is the risk that changes in market prices, Operational risk is the risk of direct or indirect loss
such as interest rates, foreign exchange rates and arising from a wide variety of causes associated with
equity prices will affect the value of the Company's the Company’s processes including regulatory risk,
assets, the amount of its liabilities and/or the personnel, technology and infrastructure, and from
Company's income. Market risk arises in the Company external factors other than credit, market and liquidity
due to fluctuations in the value of assets and liabilities. risks such as those arising from legal and regulatory
The objective of market risk management is to manage requirements, generally accepted standards of
and control market risk exposures within acceptable corporate behaviour and force majeure events.
parameters, while optimising the return on risk. The The Company's objective is to manage operational risk
nature of the Company's exposures to market risks and so as to balance the avoidance of financial losses and
its objectives, policies and processes for managing damage to its reputation with overall cost effectiveness
these risks have not changed significantly over the prior and to avoid control procedures that restrict initiative
year. For each of the major components of market risk, and creativity. These risk management activities include:
the Company has policies and procedures in place
• the management and control of significant operational
which detail how each risk is managed and monitored. risks by each department;
Interest Rate Risk • the active involvement of an independent internal audit
Interest rate risk is the risk that the value of a financial department in assessing significant risks identified;
instrument will fluctuate due to changes in market • the use of insurance to ensure that assets and
interest rates. The Company contracts financial personnel are adequately covered
liabilities at fixed or floating interest rates. These
primarily relate to loans, customer deposits, certain A critical tool used in the management of operational
trade payables and bank overdrafts. risk is Insurance. The company ensures that its assets
and personnel are adequately covered through a variety
Foreign Currency Risk of policies, including personnel, property damage and
Foreign currency risk is the risk that the value of a business interruption. The regulatory tariff mechanism
financial instrument will fluctuate due to changes in also contributes to the adequacy of our asset coverage
foreign exchange rates. by means of provisions for damage to our transmission
and distribution assets and certain force majeure
The Company incurs foreign currency risk primarily on
occurrences.
the settlement of accounts receivable, accounts
payable and borrowings that are denominated in a
currency other than the United States dollar.
The currencies giving rise to significant foreign currency
risk are the Jamaican dollar (J$) and the
Euro (€).
The Company manages foreign exchange exposure by
maintaining adequate liquid resources in appropriate
currencies and by managing the timing of payments on
foreign currency liabilities.

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JPS Linesmen - Excellent performance at the International
Linesmen Rodeo in Kansas, USA

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Performance Highlights
Prime Minister the Most Hon. Andrew Holness (centre) shares a photo moment with CEO of
New Fortress Energy, Wes Edens and JPS President & CEO, Kelly Tomblin, at the Declaration
of Commissioning of the newly converted Bogue Power Plant.
The Year of 2016 was dubbed internally, as the Year Financial Performance
of Breakthrough. This mantra became a guiding light
JPS ended 2016 with a Net Profit of $24.1 million,
for members of the organization, and helped drive
which was $2.5 million (or 9%) below the profit
many of the achievements seen across the Company
recorded for 2015. The decrease in profit is primarily
during the year. These included the Conversion of the
as a result of an increase in our operating expenses.
Bogue Power Plant to use Liquefied Natural Gas and
the introduction of LNG into the fuel mix in the During the year, the Company incurred additional
country. The organization also saw internal depreciation charges of approximately $13.4 million,
improvements and strides, such as the island wide as a result of changes in the rate of depreciation used
rollout of the Pay As You Go (prepaid) service and for certain assets held. The new Electricity Licence
customer service improvements, among others. issued in 2016 reduced the expected useful lives of
certain categories of our property, plant and
equipment and as a result the depreciation rates used
by the company were also modified to bring them in
line with these new rates which resulted in a

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Performance Highlights Cont’d
Chief Technology Officer, Gary Barrow, explains how the smart meter will empower customers,
as part of the development of a smarter grid. Listening intently are Director of Corporate
Communications, Winsome Callum (centre) and President & CEO, Kelly Tomblin.
significant accelerated depreciation charges for these The journey to fuel diversification through natural gas
categories. Additionally, we also experienced an is a dream that Jamaica had pursed for more than a
increase in staff costs and other operating expenses. decade - since the Bogue Combined Cycle Gas
Although energy sales (kWh) increased by Turbine facility was first built in 2003. Many
approximately 4% in 2016, resulting in increased alternative fuels to oil were explored, including
revenue of approximately $11.8 million, this was Ethane, Propane, Compressed Natural Gas and
offset by the removal of the Bogue Plant CGLs but in the end all were confident that Liquefied
Reconfiguration Fund (BPRF) ($12.5 million), resulting Natural Gas (LNG), a commercially proven and tried
in our non-fuel revenue being relatively flat between fuel, was the best choice in the journey to fuel
2016 and 2015. diversification.
The introduction of natural gas to Jamaica was easily
JPS Makes Fuel Diversification a Reality
JPS’ biggest achievement in 2016. It represents a
It was years in coming, but in 2016 natural gas finally significant milestone which sees approximately 10%
arrived on the shores of Jamaica, and was officially of our production now coming from a new source of
introduced into the nation’s fuel mix. The process fuel (natural gas). There are several additional
involved the entire JPS and saw both internal and economic benefits to be derived from having LNG in
external partners aligning around the vision of fuel Jamaica, including: LNG bunkering for ships, LNG
diversification. transshipment services for the Caribbean to support

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small scale deliveries and natural gas supplies for Expansion of Prepaid Service
industrial purposes (including the transport sector).
JPS continued to deliver on its mission to provide a
Jamaica is only the third country in the region to be
solution for every Jamaican in 2016. Our prepaid,
importing LNG. The significance of LNG was not lost
Pay-As-You-Go (PAYG) service, in particular, saw a
on the international community – Jamaica got a credit
significant growth in popularity as an energy
rating upgrade from Moody’s shortly after this
management tool.
accomplishment.
Jamaican customers now join millions in such
It is expected that in 2017, 12% of production at JPS
countries as the United Kingdom, South Africa,
will come from natural gas and approximately 12%
Argentina, the United States and a number of
from renewable energy sources as well.
Caribbean islands, which offer pre-paid electricity
Building a Smart Nation service.
In 2016, we took the first bold steps to create the The Pay As You Go service was first piloted in 2015,
Caribbean’s first ‘smart city’ in New Kingston. In the with a small test group in Portmore, St. Catherine.
first phase of this initiative, the company started the The pilot was extended to three parishes to allow for
roll-out of smart meters in the commercial district, testing of the technology and customer behavior.
and the replacement of streetlights to LED streetlights Residential and small business customers who have
with smart capabilities. As part of the ongoing roll-out made the switch from post-paid to pre-paid, have
of the smart grid, JPS also deployed over 20,000 typically experienced savings of about 35% as a
smart meters in communities islandwide, and result of being more aware of how their electricity is
unveiled the country’s first smart house in Meadows being used in real time.
of Irvin in St James.
Persons who opt to go pre-paid have a Customer
Interface Unit installed in their homes, which will allow
them to top up credit and to see their available
balance. The Unit also signals when credit is running
low, so that customers will be able to top up on time.
Furthermore, customers in need of emergency top-
up may call the Customer Care Centre for an advance
on credit, making the product virtually risk free.

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Education, Youth and Information Minister, Senator the Hon. Ruel Reid (centre), participates in the
symbolic handover of a cheque by the JPS Foundation to the Overseas Examinations Commission
(OEC) to cover examination fees for students sitting the Caribbean Secondary Education Certificate
(CSEC) Electrical and Electronic Technology test. Occasion was the launch of the JPS Foundation
CSEC Electrical and Electronic Technology Exam Fee Sponsorship Initiative at St. George’s College,
downtown Kingston on November 22. Others sharing the moment are JPS Foundation Manager,
Jacinth Morgan Collie (3rd left); JPS President and Chief Executive Officer, Kelly Tomblin (5th left);
JPS Foundation Chairman-elect and Company Vice President for Customer Service and
Communication, Keith Garvey (centre back); OEC Deputy Director, Sharon Burnett (5th right);
Permanent Secretary in the Ministry of Education, Youth and Information, Dean-Roy Bernard (4th right)
and some of the students who will benefit from the initiative.
Lighting the Way for Skills Training in High Schools Recognition at Home and Abroad
Through the JPS Foundation, we continued to make JPS received a number of recognitions in 2016.
our mark on education in Jamaica. In 2016, we The President & CEO Kelly Tomblin, won the CEO
entered into an agreement with the Ministry of of the Year Award at the 2016 Platts Global Energy
Education, Youth and Information and the Overseas Awards, held in New York, USA. JPS was also a
Examination Commission (OEC), to cover the cost of finalist - for the Energy Company of the Year
examination fees for students sitting the Electrical Award.The CEO was the sole female in an
and Electronic Technology exams for the Caribbean outstanding line-up of finalists from around the world,
Secondary Examinations Council (CSEC). The including India, China, Thailand, UK and
initiative supports the Education Ministry’s the USA.
requirement to have each student receive skill based Locally, The Jamaica Institute of Engineers awarded
knowledge or certification, by the time they leave high the Company the Best Project of the Year Award, for
school. The JPS Foundation also continued its work the Bogue Conversion Project, undertaken earlier in
in Energy Education, Youth Development and general the year. The organization was also selected for the
Community Outreach. Project Management Global Institute (PMGI)
Exemplary Employer Awards. Congratulations also
came in from the Social Development Commission,
in recognition of our St. Ann Team, which was
awarded the "2016 Spirit of the Community Award,”

| 20 |
(l-r) JPS Customer Experience Officer, Allison Haynes Laraque; JPS Head of Customer Experience,
Gina Tomlinson-Williams; C&W Business, Flow’s Marketing Manager, Michelle Clunie; JPS Manager,
Customer Care Centre, Shanique Donaldson-McIntosh, pause for a snap shot after JPS receives the
PSOJ/Jamaica Customer Service Association’s Service Excellence Award for Quality Monitoring.
for Unwavering Support of Programmes and Projects

that Foster Social Protection and Community
Development.
The Company also received special recognition at the
Montego Bay Chamber of Commerce & Industry
Annual Awards event – copping the New Investment
Business Development & Expansion Award, for JPS’
role in bringing gas to Jamaica, and the conversion
of the Bogue Power Station to operate on natural gas.
Additionally, Director for Region West, T’Shura Gibbs,
was presented with the Outstanding Customer
Service Vocation Award.
JPS also received the PSOJ/JaCSA Service
Excellence Award for Quality Monitoring. This is the
first award JPS has ever won for Customer Service,
and stands as a major breakthrough for the company
and the perception of our partners and stakeholders.
The Company was also selected for the Gleaner
Honour Award for its strides in Science and
Technology in 2016.

| 21 |
(l-r) US Ambassador, His Excellency Luis Moreno; Managing Director, Fortress Investment Group,
Brannen McElmurray; JPS President & CEO, Kelly Tomblin; Prime Minister of Jamaica, the Most Hon.
Andrew Holness; Minister of Science, Energy and Technology, Dr. The Hon. Andrew Wheatley;
Permanent Secretary in the Ministry of Science, Energy and Technology, Hillary Alexander; and
President of New Fortress Energy, Wes Edens, pause for a moment at the newly constructed LNG
Terminal in Montego Bay, St. James.
Aerial View of the newly constructed LNG Terminal and the Ship ‘Anthony Veder’, which brought Natural
Gas to the island. The terminal is located in Montego Bay, St. James.

| 22 |
JPS President & CEO, Kelly Tomblin, accepts the CEO of the Year Platts Award for 2016

| 23 |
Section of the JPS Magotty Hydro Dam

| 24 |
Directors’ Report
The Directors of the Jamaica Public Service Company Limited submit herewith their Annual Report with the Audited
Financial Statements for the year ended December 31, 2016:
Year ended Year ended

December 31, 2016 December 31, 2015
(Twelve months) (Twelve months)
US$’000 US$’000
OPERATING REVENUES
Profit before Taxation 32,992 30,829
Taxation (expense) (8,941) (4,322)
Net Profit attributable to shareholders 24,051 26,507
Dividends on Preference Shares:
- Classes ‘B’ through ‘E’ 1.3 1.4

- Class ‘F’ 1,751 2,339
- Class ‘G’ 1,065 0
Dividends on Ordinary Shares 0 0
Dividends:
The dividends for the year on the preference shares for Classes B-E have been paid in full; dividends for the Class
F preference shares have all been paid in full except for the fourth (4th) quarter of 2016 which was paid on March
24, 2017; no dividends were declared or paid on the ordinary stocks and shares for the year 2016.
The Class G Redeemable Preference Shares issued to the Accountant General’s Department valued at
US$999,084.00 and to MaruEnergy JPSCo I, SRL valued at US$2,000,458 were redeemed for payment arrears or
accruals of the cumulative preferential dividends.
Auditors:
In accordance with Section 154 of the Companies Act, a resolution proposing the appointment of the Auditors and
for the Directors to fix the Auditors’ remuneration will be put to the Annual General Meeting.
Directors:
Messrs. Geun Tae Kim, Gordon Shirley and Evan Duggan resigned from the Board during the year under review.
The Board wishes to express its sincere appreciation to Messrs. Kim, Shirley and Duggan for their sterling
contribution to the Company during their tenure on the Board.
Consequent on the resignation of Mr. Chang Sup Jo as Chairman (he remains a director of the Board), Mr. Seiji
Kawamura was appointed Chairman effective April 13, 2017.
In accordance with Articles 86 and 123 of the Company’s Articles of Incorporation, Messrs. Ha Kyoung Song,
Masao Imazato, Colin Williams, Mo Majeed and Ms. Suzette Buchanan, having been appointed to the Board since
the last Annual General Meeting shall cease to hold office and being eligible, offer themselves for election.
The Directors wish to thank the Management and staff of the Company for their performance during the year under
review.

| 25 |
Corporate Data
Registrar Bankers
Cumulative Preference Shares National Commercial Bank Jamaica Limited
and Ordinary Stock & Shares 3rd Floor, 32 Trafalgar Road
Jamaica Central Securities Depository Limited Kingston 10, Jamaica, W.I.
40 Harbour Street, Kingston
Jamaica WI Bank of Nova Scotia Jamaica Limited
ScotiaBank Centre
Registered Office Cnr Duke & Pt Royal Streets
6 Knutsford Boulevard, Kingston 5, Jamaica, W.I. Kingston, Jamaica, W.I.
Auditors CIBC First Caribbean International

KPMG Bank Jamaica Limited
6 Duke Street, Kingston, Jamaica, W.I. 23 -27 Knutsford Boulevard
Kingston 5
Attorneys-at-Law
Livingston Alexander & Levy Citibank, N.A.
72 Harbour Street, Kingston 63 Knutsford Boulevard
Kingston 5
Clinton Hart & Co.
Attorneys-at-Law
58 Duke Street, Kingston
Hylton Powell
Attorneys-at-Law
11a Oxford Road, Kingston 5
Nunes Scholefield Deleon & Co.

6a Holborn Road, Kingston 5
Symone Mayhew
Attorney-at-Law
17 Herb McKinley Drive, Kingston 6
Bogue at twilight

| 26 |
JPS Head Office

| 27 |
Ten Largest Shareholders’ Listings
As At December 31, 2016
JPS Preference B Shares (7%)
Rank Name of Shareholder No. of Units

1 Philip Harvey-Lewis 130,666
2 Security Brokers Limited 81,005
3 MF&G Trust and Finance Ltd-A/C 57 41,000
4 Everard Smith/Alain Smith 38,285
5 Jamaica Mutual Life Assurance Company 16,567
6 Crown Life Insurance Company 10,000
7 John Headcock 7,410
8 National Utility Fund 5,600
9 Kimberly Burrowes 5,597
10 Estate George H Scott 5,000
JPS Preference C Shares (5%)

1 Security Brokers Limited 6,917
3 Everard Smith 5,371
4 Renata Headcock 4,460
5 Jamaica Mutual Life Assurance Company 3,610
6 Herma Sassoon (Deceased) 1,900
7 MF&G Trust & Finance Ltd- A/C 57 1,835
8 Uraine Ferro 1,800
9 Prudential Stockbrokers Ltd 1,628
10 Buck Security Brokers Ltd 1,566
JPS Preference D Shares (5%)

3 MF&G Finance Ltd- A/C 57 71,921
4 Security Brokers Ltd. 64,470
5 Jamaica Mutual Life Assurance Society 52,795
6 Crown Life Insurance Company Ltd 20,000
7 Grethel Forrester-Benjamin 20,000
8 Prudential Stock Brokers Ltd 18,185
9 Ronald W. Kuper 13,600
11 Unranie Ferro 9,202

| 28 |
JPS Preference E Shares (6%)

2 MF&G Trust & Finance Ltd- A/C 57 36,660
3 Security Brokers Ltd 30,000
4 Susan Headcock 30,000
5 Jamaica Mutual Life Association Staff S/A Fund 11,060
6 Field Nominees Limited 10,000
8 Estate Charles O. Edwards (Deceased) 5,000
9 Imperial Optical Company (WI) Ltd 5,000
10 Berkeley Properties Ltd 3,613
11 Winston G. Headcock 3,400
12 Monica Powell 3,300
JPS Preference F Shares (9.5%)

1 National Insurance Fund 350,000
2 P.A.M. LTD - JPS Employees Superannuation 324,832
Fund
3 Grace Kennedy Limited Pension Fund 250,000
4 PAM – Pooled Equity Fund 192,931
5 NCB Insurance Company Limited 149,900
6 ATL Group Pension Fund Trustee Nominee 100,000
Limited
7 JCSD Trustee Services Ltd – Sigma Solution 98,644
8 Sagicor Life Jamaica Limited 98,643
9 SJIML A/C 3119 98,137
10 Sagicor Pooled Foreign Currency Fund 78,914
JPS Ordinary Stocks

1 EWP (Barbados) 1 SRL 155,366,792
2 Maruenergy JPSCO 1, SRL 155,366,792
3 National Investment Bank of Jamaica Ltd 2,183,237
4 R.S Gamble and Son Ltd 108,139
5 Faith A. Myers 74,394
6 Melle Marguerite Simard (Deceased) 59,514
7 Frank Renfrette 45,462
8 John George 43,396
9 Agnes Theresa Fong Yee 31,410
10 Renee Rosier Joel 29,757
JPS Ordinary Shares

1 EWP (Barbados) 1 SRL 8,575,911,306
2 Maruenergy JPSCO 1, SRL 8,575,911,306
3 Accountant General 2,386,573,897
4 Accountant General 1,974,065,546

| 29 |
Hunts Bay Employee on the Job

| 30 |
Corporate Governance
Good Corporate Governance is fundamental to the Board Oversight
core values, culture and business practices of
Jamaica Public Service Company Limited (JPS). The The Board of Directors is committed to and is
Directors of Board of JPS are fully cognizant of their ultimately accountable for enhancing stakeholder
legal and corporate governance responsibilities and value by providing an advisory role in consultation
they undertake these with honesty, probity and with management regarding the strategic and
integrity. The Board works together with operational direction of the company. In addition, the
Management to set the "tone at the top" for all Board provides oversight in monitoring company
employees to emulate particularly as it pertains to performance. The responsibilities of the Board are
doing the right thing in our business. The Board separate and distinct from those of management.
through its work and the work of its Committees
The Board meets approximately once per quarter.
monitor and ensure the effectiveness of the
However special meetings are convened as needed
Company’s corporate governance practices and
especially when urgent and critical issues are required
approves changes, as needed.
to be addressed between scheduled meetings. From
For JPS, compliance is a key tenet of its strategic risk time to time, members of the Board regularly meet
management framework as risk management is the with key members of the senior management team to
basis of any successful entity and is the foundation consider critical financial issues and matters of
upon which JPS must continue to grow as a true first strategic importance to the Company.
class corporate brand fulfilling its Vision and Mission
Composition of the Board
of providing a solution for every Jamaica for the
growth and prosperity of Jamaica. JPS has The Company’s Directors have diverse skill sets,
established corporate governance principles which strong experience and varied backgrounds which
guide management decisions as well as its core include local and international experience in
system of processes and procedures by which all engineering, finance and audit, strategic
employee decisions and actions must be carried out. management, banking, human resources, education,
The Board has responsibility, along with the President and risk management. JPS Directors take care in
and her Executive Leadership Team, for managing the ensuring that decisions are made after fulsome
Company’s day to day operations, with material discussion and careful deliberation of all relevant
issues going before the Board for consideration and information.
decision. Management is responsible for the
execution of an agreed upon strategy and for all
operational matters. Management is also supported
in its work by Committees of the Board.
The Company’s corporate governance framework is

based on its constitutive documents and best
practice. The Board, members of the Executive and
the Legal & Compliance Division work together to
ensure that the Company’s governance practices are
consistent and compliant with all applicable
legislation, regulations, standards and codes.
Our Corporate Governance Guidelines are available

on our website at: www.myjpsco.com.

| 31 |
Corporate Governance Cont’d
THE TABLE BELOW HIGHLIGHTS THE RESPECTIVE SKILLS SETS OF THE BOARD OF DIRECTORS:
BOARD EXPERTISE GENERAL FINANCE & STRATEGIC BANKING ENGINEERING H.R. & LEGAL RISK
M ANAGEMENT AUDIT M ANAGEMENT EDUCATION M ANAGEMENT
Chang Sup Jo
Tatsuya Ozono
Seiji Kawamura
Minna Israel
Prof. Evan Duggan
Prof. Gordon Shirley
Charles Johnston
Geun Tae Kim
Fitzroy Vidal
Dong Uk Kim
(Alternate Director)

Kengo Aoki
(Alternate Director)
Colin Williams
Suzette Buchanan
As at December 31, 2016, the Board comprised of nine (9) directors and two (2) alternate directors and is chaired
by Mr. Chang Sup Jo, a representative from one of our majority shareholders, EWP (Barbados) 1 Srl. Two (2) of
our nine (9) directors are independent of the Company. The Board is represented as follows:
• Three (3) directors represent MaruEnergy JPSCO I, Srl

• Three (3) directors represent EWP (Barbados) 1 Srl
• Three (3) directors represent the Government of Jamaica
CURRENT DIRECTORS
Seiji Kawamura– Chairman1
Chang Sup Jo
Masao Imazato2
Minna Israel (Independent Director)
Colin Williams 3
Suzette Buchanan4
Charles Johnston (Independent Director)
Ha Kyoung Song5
Fitzroy Vidal
Dong Uk Kim (Alternate Director)
Kengo Aoki (Alternate Director)
Mo Majeed (Alternate Director)6
Tatsuya Ozono7
1
Appointed April 13, 2017
2 Appointed April 13, 2017
3 Appointed July 22, 2016
6 Appointed April 13, 2017
7 Resigned April 3, 2017

| 32 |
The only director compensation paid is to non- Conflicts of Interest
shareholder members of the Board who receive a
In adherence to the Company’s Articles of
fixed amount equivalent to US$1,000 for attendance
Incorporation, various statutory requirements on the
at each Board or Committee meeting, and
disclosure of Directors’ interest as well as the
any other meeting requiring a director’s
Company’s Code of Ethics, members of the Board
attendance. Shareholder representatives receive no
who have interest in proposals being considered by
compensation.
the Board, including where such interest arises
Nomination, Appointment, Term, Election and through close family members, must make a
Retirement of Directors declaration to that effect. Directors have the same
obligation as employees to abide by all tenets of the
The Company is satisfied that the current slate of
Company’s Code of Ethics and must complete the
Directors have the appropriate skills, experience and
Annual Code of Ethics Questionnaire.
capabilities to meet the challenges faced by the
Company. In selecting members of the Board, COMMITTEES OF THE BOARD
consideration of guidelines similar to those
Audit Committee8
recommended by the Private Sector Organization of
Jamaica is taken into account. All Directors JPS has an established Audit Committee, the primary
automatically retire from the Board at the end of a responsibilities of which are to assist the Board of
three-year appointment. Each year at the Annual Directors in carrying out its duties as they relate to the
General Meeting, the Board recommends and the organization’s accounting policies, internal controls
shareholders elect the retiring directors or new and financial reporting practices. In general, the
directors as the case may be in accordance with the Committee exercises its responsibility in three
Company’s Articles of Incorporation. There are no important areas:
Executive Directors on the Board of JPS. • Financial Reporting
Director Orientation and Training Opportunities • Governance of Internal Controls and
Directors are afforded continuous education about Accounting Policies
the Company, technological developments in the • Risk Management in the Company
electricity industry, new energy products and
Members of the Audit Committee as at December
business opportunities in the Energy Sector. All
31, 2016 are:
Directors have access to and are encouraged to
engage the Chairman, the President & Chief  Ms. Minna Israel - Chairman (Independent)
Executive Officer and key members of the Executive  Mr. Colin Williams (Independent)
Team. Members of the Executive Leadership team
 Mr. Ha Kyoung Song
often present to the Board not only on the Company’s
operations but also on a variety of topics in an effort
to keep Directors apprised of developments in the
energy sector. This affords Directors, an opportunity
to pose questions to and interact with senior
management on key topics.
8
Messrs. Evan Duggan and Geun Tae Kim resigned from the Audit Committee on July 22, 2016 and July 31, 2016 respectively. Consequent
on their resignation from the Board as both were leaving the jurisdiction, Messrs. Colin Williams and Ha Kyoung Song were appointed on
July 22, 2016.

| 33 |
Corporate Governance Cont’d
Other invitees to the Committee’s meeting include: • Connected Party list and transactions
 Mr. Chang Sup Jo – JPS Board Chairman • Compliance Reports
 Mrs. Kelly Tomblin – President & CEO and/or • Management Letter from the External Auditor.
other executives or managers as are required.
Operations Committee9
 Mrs. Leisa Batiste-White – Head-Internal Audit
The Board established an Operations Committee the
 Ms. Katherine P.C. Francis – Corporate primary responsibility of which is to assist the Board
Secretary/Ms. Kim Robinson – Assistant of Directors in the performance of its functions and to
Secretary provide technical advice and strategic guidance to
 Representatives of the Company’s external Management with respect to the day-to-day
auditor attend Committee meetings as needed. operations of the Company subject to, of course, the
powers, authority, direction and control of the Board.
The Terms of Reference or Charter of the Company’s
Audit Committee are reviewed by the Committee and The establishment of the Operations Committees is
upon recommendation, approved by the Board. The consistent with current corporate board practices in
Charter is reviewed from time to time and where Jamaica. This is an efficient approach to the conduct
appropriate may be revised by the Board. The of business as it facilitates a thorough examination of
Committee has oversight responsibility for the essential details by the Committee, who can then
Company specifically in relation to the following effectively address critical operational issues that may
areas: arise at Board meetings.
• The Integrity of the financial reporting of the Members of the Operations Committee as at
Company and system of internal controls December 31, 2016 are:
• Ensuring compliance with legal and regulatory  Mr. Tatsuya Ozono (Chairman)
requirements  Mr. Ha Kyoung Song
• The performance of the internal Audit and  Mr. Kengo Aoki
external auditors
 Mr. Fitzroy Vidal
The Audit Committee reviewed and recommended for
 Prof. Audley Darmand
approval (where relevant) the following items during
(Shareholder Representative)
the year:
 Mr. Hyung Soo Kim
• Management accounts for the Company
(Shareholder Representative)
• Audited Financial Statements
Other invitees to the Committee’s meeting include:
• Engagement Letter of the External Auditors
 Mrs. Kelly Tomblin – President & CEO
• External Audit Fees
 Ms. Katherine P.C. Francis –Corporate
• Internal Audit Reports Secretary
• Regulatory Examination Reports and  Members of the Executive Leadership Team
Management Response
9
Messrs. Geun Tae Kim and Young Sung Park resigned from the Operations Committee effective July 31, 2016 and March 17, 2016
respectively. Consequent on their resignation from the Board as both were leaving the jurisdiction, Messrs. Colin Williams, Ha Kyoung Song
and Mr. Hyung Soo Kim were appointed on July 22, 2016 and March 30, 2016, respectively.

| 34 |
THE TABLE BELOW HIGHLIGHTS THE ATTENDANCE RECORD OF BOARD MEMBERS AT MEETINGS DURING
THE YEAR 2016:
ATTENDANCE RECORD FOR DIRECTORS

NAME OF DIRECTORS ANNUAL BOARD AUDIT OPERATIONS
GENERAL MEETING COMMITTEE COMMITTEE
MEETING
TOTAL NUMBER OF MEETINGS HELD 1 6 4 3
Chang Sup Jo (Chairman) 1 6
Tatsuya Ozono 1 5 3
Geun Tae Kim* 1 4 2 1
Ha Kyoung Song** 2 2 2
Seiji Kawamura*** 3
Charles Johnston 5
Minna Israel 1 6 4
Prof. Gordon Shirley**** 3
Prof. Evan Duggan**** 3 2
Fitzroy Vidal 1 6 3
Suzette Buchanan***** 3
Colin Williams***** 3 2
Kengo Aoki (Alternate Director) 1 6 3
Dong Uk Kim (Alternate Director)***
• *resigned July 31, 2016
• **appointed July 31, 2016
• *** resident overseas
• ****resigned July 22, 2016
• *****appointed July 22, 2016

| 35 |
Corporate Compliance-
JPS Code Of Ethics & Business Conduct
The Company has in place a Code of Ethics and • Keeping the Company’s transactions,
Business Conduct, which guides employees in the communications and information accurate,
right way to do business at JPS. It is a core confidential and secure and all customers’
component of the Company’s Compliance safe; and
Programme, which endeavours to ensure that
employees work in accordance with principles of • The need to treat persons fairly and
good corporate governance. The Code also equitably – whether customers, suppliers,
specifically addresses the issues of sexual employees or others who deal with the
harassment, the Protected Disclosure or ‘Whistle Company.
Blower’ Legislation and the Company’s attendant
Although the Code provides standards of conduct for
policies. In order to foster the confidence of its
many situations, it does not cover all the possible
shareholders, employees, investors and the general
situations that may arise. Accordingly, all
public, it goes beyond the legal and regulatory
stakeholders are expected to conduct themselves in
framework in Jamaica and reflects internationally
accordance with their legal responsibilities and in a
recognised principles and practices. In addition, the
manner consistent with the spirit and letter of this
Company provides employees with a Code of Ethics
Code and avoid even the perception of improper
& Business Conduct Questionnaire, which is
behaviour
completed by employees on a yearly basis and there
is also a Declaration of Interest Form for persons to Management
disclose any potential or actual conflict of interest.
The Company regularly reviews and updates its Code As regards the Management of the Company, the
of Conduct confirming its commitment to Majority Shareholders select the President & Chief
demonstrably lead and promote good corporate Executive Officer in accordance with the Company’s
governance and the highest standards of ethical and Articles of Incorporation and they conduct the
business conduct. performance review of the President. Members of the
management team are selected by the President &
The Board of Directors, the management and all CEO in conjunction with the Board and persons with
employees of the Company are required to observe a high standard of expertise and significant
the Company’s Code of Ethics and Business Conduct experience in the particular area are sought and
and in this regard, annual certification of due engaged.
compliance is required and this is achieved through
the annual Questionnaire. The Code of Ethics and
Business Conduct provides guidance on key topics
of business ethics including but not limited to:
• Guidelines on how to avoid conflicts of

interest
• Guidelines on how to conduct business

honestly and with integrity

| 36 |
JPS Linemen at Work

| 37 |
Operational Statistics
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| 38 |
Key Performance Indicators
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| 42 |
Index to the Financial Statements
Independent Auditors’ Report 44
Statement of Financial Position 52
Statement of Profit or Loss and Other Comprehensive Income 53
Statement of Changes in Shareholders’ Equity 54
Statement of Cash Flows 55
Notes to the Financial Statements 56
Notice of Annual General Meeting 107
Form of Proxy 108

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Notice of Meeting
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Jamaica Public Service Company Limited will be
held on Friday, 28th day of July, 2017 at the Company’s registered offices, 6 Knutsford Boulevard, Kingston 5
commencing at 10:00 a.m. for the following purposes:
1. TO RECEIVE THE ACCOUNTS
To receive the Audited Accounts for the year ended December 31, 2016 and the Reports of the Directors
and Auditors thereon and to consider and (if thought fit) pass the following resolution:
That the Accounts for the year ended December 31, 2016 together with the Reports of the Directors and
Auditors thereon be approved and adopted.
2. TO ELECT DIRECTORS
i. In accordance with Articles 86 and 123 of the Company’s Articles of Incorporation, Directors Ha Kyoung
Song, Masao Imazato, Suzette Buchanan, Colin Williams and Mo Majeed, having been appointed to the
Board since the last Annual General Meeting shall cease to hold office and being eligible, offer
themselves for election.
The Company is asked to consider, and if thought fit pass the following resolutions:
a. “That Director Ha Kyoung Song (EWP, Barbados, 1, Srl) is hereby elected a Director of the Company”
b. “That Masao Imazato (MaruEnergy JPSCO 1, Srl) is hereby elected a Director of the Company”
c. “That Director Suzette Buchanan (Government of Jamaica) is hereby elected a Director of the
Company”.
d. “That Director Colin Williams (Government of Jamaica) is hereby elected as a Director of the
Company”.
e. “That Director Mo Majeed (MaruEnergy JPSCO 1, Srl) is hereby elected as an Alternate Director.
ii. That Mr. Seiji Kawamura having being appointed Director be and is hereby elected as Chairman of
the Board in accordance with the Articles of Incorporation.
3. TO AUTHORIZE DIRECTORS TO APPOINT AUDITORS AND FIX THEIR REMUNERATION
4. ANY OTHER BUSINESS FOR WHICH DUE NOTICE HAS BEEN GIVEN.
DATED THIS 28TH DAY OF APRIL 2017
______________________________
BY ORDER OF THE BOARD
Katherine P.C. Francis
Secretary

| 107 |
Form of Proxy
I/WE…………………………………………………………………………of………………………………………………
being a member/members of the above Company hereby appoint the Chairman of the meeting or failing him …
……………………………………………………..of……………………………
as my/our Proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held
on the 28th day of July, 2017 at 10:00 a.m. and at any adjournment thereof.
RESOLUTION FOR AGAINST
Resolution 1
Resolution 2(i)(a)
Resolution 2(i)(b)
Resolution 2(i)(c)
Resolution 2(i)(d)
Resolution 2(i)(e)
Resolution 2(ii)
Resolution 3
Resolution 4
(Any Other Business)
DATED THE DAY OF 2017
…………………………………………….. …………………………………
(signature) (signature)
1. If you wish to appoint a proxy other than the Chairman of the Meeting, please insert the person’s name and
address and delete the words “the Chairman of the Meeting or failing him”. Initial the deletion.
2. Any alteration to this form of proxy should be initialled
3. If the appointer is a corporation this form of proxy must be UNDER ITS COMMON SEAL or under the hand of
some officer or attorney of the corporation DULY AUTHORIZED IN WRITING
4. In case of joint holders the vote of the person whose name stands first on the Register will be accepted in
preference to the vote of the other holders.
5. To be effective this form of proxy and the power of attorney or other (if any) under which it is signed or a notar-
ially certified copy, of that power or authority must be deposited at Jamaica Public Service Company Limited,
6 Knutsford Boulevard, Kingston 5 for the attention of the Secretary not less than forty-eight (48) hours before
the time for the holding of the meeting.

| 108 |
Working to Maintain Service
in Rural Jamaica
Cover Photo
“Twin Ships” by Antoine Chung,
finalist in the #JPS Night Lights Competition
1-888-225-5577
www.jpsco.com
Facebook: /myjpsonline
Twitter: @myjpsonline

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2016 Annual Report

| JAMAICA PUBLIC SERVICE COMPANY LIMITED

Working to maintain reliable service

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Executive Leadership Team 10

Management Discussion & Analysis 13

Ten Largest Shareholdings 28

Key Performance Indicators 39

Independent Auditors’ Report 44

Statement of Financial Position 52

Statement of Profit or Loss and

Other Comprehensive Income 53

Statement of Changes in Shareholders’ Equity 54

Statement of Cash Flows 55

Notes to the Financial Statements 56

Notice of Annual General Meeting 107

Form of Proxy 108

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

During the year, the Company also made significant

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Chang Sup Jo Ha Kyong Song

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Professor Gordon Shirley

Fitzroy Vidal Minna Israel

Professor Evan Duggan

Hon. Charles Johnston, C.D Kengo Aoki Geun Tae Kim

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Joseph Williams Katherine P.C. Francis

Dan Theoc Keith Garvey

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

for Unwavering Support of Programmes and Projects

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Year ended Year ended

- Classes ‘B’ through ‘E’ 1.3 1.4

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Auditors CIBC First Caribbean International

Nunes Scholefield Deleon & Co.

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Rank Name of Shareholder No. of Units

JPS Preference C Shares (5%)

Rank Name of Shareholder No. of Units

JPS Preference D Shares (5%)

Rank Name of Shareholder No. of Units

JAMAICA PUBLIC SERVICE COMPANY LIMITED | ANNUAL REPORT 2016

Rank Name of Shareholder No. of Units

JPS Preference F Shares (9.5%)

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